€154.4 multi-billion budget announced

Budget 2025 sees expenditure of €154.4 billion, an increase of 6.9% on last year.

Announced on Tuesday lunchtime by Minister for Finance Jack Chambers and Minister for Public Expenditure Paschal Donohoe, it is a multi-billion Budget which arrives ahead of an impending General Election.

Some key points include an increase in the main tax credits, the Personal, Employee and Earned Income Credits, by €125.

Standard Rate Cut-Off Point increased by €2,000 to €44,000, with proportionate increases for married couples and civil partners.

The USC sees the 4.0% rate is reduced to 3%.

As of 1 January 2025, the national minimum wage will increase by 80 cent per hour to €13.50 per hour.

The entry threshold to the new 3% rate is being increased by €1,622 to €27,382, in line with the increase to the national minimum wage.

This means that a full-time worker on the minimum wage will see an increase in their net take home pay of approximately €1,424 on an annual basis.

There will be €750 million allocated to facilitate an initial, direct equity injection to support capital spending on the further development of our electricity grid infrastructure.

The extension of the upper age limit for pension relief until the age of 70 reflects “current work practices.”

Excise duty on a packet of 20 cigarettes increased by €1, to bring the price of cigarettes in the most popular price category to €18.05.

Tax on vapes next year will see a typical disposable vape costing in the region of €8 rise to €9.23 including VAT.

In relation to Carbon Tax, the rate per tonne of carbon dioxide emitted for petrol and diesel will go up from €56 to €63.50 from October 9.

There will be an €12 increase for those in receipt of a weekly Social Protection payment.

The Carer’s Allowance Means Test disregard is being increased to €625 for a single person and €1,250 for a couple.

The Domiciliary Care Allowance is being increased by €20.

The Carer’s Support Grant is being increased by €150 to €2,000.

Maternity, paternity, adoptive and parents’ payments are being increased by €15.

The weekly rates of the increase for a Qualified Child are going up by €4 for under 12s and by €8 for over 12s.

A newborn grant of an additional double child benefit payment is being introduced – meaning a €420 to families for each newborn child.

A capital allocation of €1.3bn will support 350 building projects under way as well as a further 200 new school projects.

There will be a provision for 768 additional special education teachers and 1,600 more SNAs.

Minister Donohoe said that there will be two double payments of Child Benefit in November and December. There will also be a double payment of the Foster Care Allowance.

Help to Buy scheme extended to the end of 2029.

Department of Housing, Local Government and Heritage is being allocated €7.8bn in Budget 2025.

Key points in housing include €2bn made available in 2025 to deliver 10,000 new build social homes.

Over €3bn is being set aside to invest in “climate transition and preparing for a greener future” between 2026 and 2030, the minister has said.

The recruitment of up to 350 more staff at the Irish Prison Service as well as investment in prisoner care and rehabilitation.

There will also be a further recruitment of 1,000 gardaí and up to 150 garda civilian staff.

There will be an expansion of the international protection processing system, which includes an additional 400 staff across the area and cope with demand.

Minister Chambers said that there will be further increases to Capital Acquisition Tax thresholds which applies to gifts and inheritances and reflects rising house prices.

The Group A threshold is increasing from €335,000 to €400,000, the Group B threshold is increasing from €32,500 to €40,000 while the Group C threshold is increasing from €16,250 to €20,000.

Minister Chambers said he is proposing to extend the 9% reduced VAT rate for gas and electricity for another 6 months to 30 April 2025

A further €1.25bn will be made available to the Land Development Agency, bringing the total amount of funding to the LDA to €6.25bn.

€1 billion will be provided to Irish Water for non-domestic capital investment.

2025 will see the highest ever allocation to Overseas Development Assistance, when funding for international co-operation in the Department of Foreign Affairs will increase by €35m to reach over €810m.

€1.35bn has been allocated for the Defence Forces.